How to add a New Activity to your Trade License?

The United Arab Emirates (UAE) is known for an ever-evolving business landscape and a diverse market. As your business evolves and grows, you will find a need to expand your business and add more activities under your license. To ensure that your company is legally compliant and has all the authorizations to operate, you need to update your trade license. In this article, we will tell you how to update your trade license when you are planning to add new business activities.

What is a trade license?

A trade license is a type of legal document that states information about the business activities of a company and provides authorization to freely operate in the UAE. It makes a regulatory framework for your company that enables the business owners to operate with legitimacy. However, it is important to update the trade license when you are growing your business and adding new activities that are not originally covered in this document.

Note that conducting business activities without proper authorization can result in to serious legal repercussions including heavy fines and suspension of the business.

Step-by-Step Process of Updating Your Trade License

1. Application for the changes in Trade License

Once you receive the initial approval from Dubai Economic Development (DED), you can apply for the update of your trade license through a formal application form. It is often called the BR1 form that you need to submit with some other documents.

2. Supporting Documents

The documents required to update the trade license depend on the Emirate, the nature of your business, and the type of new business activities you need to add. However, given below are some of the common documents that need to be submitted to update the trade license:

• A copy of your valid trade license.
• A copy of your company’s Memorandum of Association (MOA) or establishment card.
• A copy of your valid lease agreement.
• Proof of any required approvals from other government entities relevant to your new activities.
• No Objection Certificate (NOC) from your landlord (if applicable).
• Any other documents requested by the DED

3. Further Formal Agreements

Depending on the legal structure of your company, you may need to prepare additional documents related to the formal internal agreement. For example, a company with multiple shareholders might need a board resolution that approves the addition of new activities.

4. Payment and Issuance of Updated Trade License

After your application and all required documents are reviewed and approved by the DED, you will be required to pay the prescribed fees for the update. You will receive your updated trade license with the newly approved activities upon successful payment.

Note that the processing time and fee may vary depending on the Emirate, the type of your business, and its activities. 

How can WeSetupBusiness help you update your Trade License?

The process of updating your trade license involves many legal formalities and complex paperwork. Choosing experts like WeSetupBusiness who thoroughly understand legal procedures and have close ties with government authorities can save you a lot of time, money, and stress.